All Forum Posts by: Michael Plaks

Anybody else besides me sees a 10-mile "FRAUD" sign all over this? 

I'm not talking about the law, it is real. I'm talking about the wide open gates for abuse with self-certification and such.

These rules are complicated. The answer to your boiler and fencing question is: most likely yes. Which method is better depends on many factors, and it's up to your accountant.

In July, I will be teaching a webinar for tax professionals on Sec. 179 and bonus depreciation, together with @Ashish Acharya, a CPA who is also active on this forum. Feel free to contact one of us if interested, however it will be rather technical.

We know that disregarded entities are treated the same as partnerships or S-corps for the 20% deduction purposes. That part is pretty clear.

What we do not know is how the "trade or business" stipulation will be interpreted in regards to rentals. We all make more-or-less informed guesses, but there is no official guidance at this moment, and it may not come for months.

In other words, a disregarded entity will not be an obstacle. The definition of a business very well could be.

@Wei Wang

You may want to consider the land trust trick described here, but make sure to consult a local attorney.

Also, there's this BP blog post discussing the LLC issue and this old discussion thread.

@Wei Wang

No, I do not know WA specifics, and I'm not an attorney. To indicate your city / state, as well as basically introduce yourself - just edit your profile. See here.

@Justin Sumulong

First, let me second what @Dmitriy Fomichenko (whose company is worth considering, by the way) said: stay away from banks and Wall Street institutions like Fidelity, TDAmeritrade and the like. Their people are ill-equipped to deal with real estate or private lending, and you will not have the professional support needed.

If you do not mind being overwhelmed, here is the (very long) BP list of SDIRA custodians.

@Wei Wang

It depends on the state, and you did not disclose yours.

For instance, here is an article about doing this in Texas.

Not only it's not worth it, it can backfire big time. S-Corps are not suitable for rentals.

@Jason Smith

On Facebook, there is a DFW investor group, and today they floated these two CPAs names:  David Zigo and Robert Gralla. I do not personally know either of them.

Also, in case you want to expand your search, these days being local is not that important. Here on this forum we have some 20 accountants specializing in REI and working nationwide.

Looks like you're asking about filing Form 1099-MISC. (W-9 is something completely different.)

The deadline for 2017 forms 1099-MISC was Jan 31. If you're talking about the work just completed, then it is too early to file 1099-MISC - they will be due next January.

You contractors is supposed to separately indicate the cost of labor. If he did, you will only report labor. If he did not separate labor - then you report the entire amount. Do not include his credit card fee either way.

You only need to create 1099-MISC if you paid by check or cash. If you paid by credit card or electronically - no need for 1099s.

If you do need 1099-MISC, then you will need the contractor's full name, address and Tax ID ("EIN"). This is what Form W-9 is for: to request this information from him.